A NY congressman and his son were indicted for insider trading in the shares of am Australian biotechnology startup, Innate Immunotherapeutics Ltd., federal prosecutors in Manhattan said on Wednesday.
Rep. Chris CollinsChristopher (Chris) Carl CollinsTrump tweet may doom House GOP effort on immigration House GOP discharge petition supporter says he likely won't sign a second one Live coverage: High drama as hardline immigration bill fails, compromise vote delayed MORE (R-N.Y.) has been arrested and charged with insider trading by the Justice Department.
The indictment charges Collins, the congressman's son and the father of the son's fiance, with conspiracy, wire fraud and other counts.
Collins was a member of Innate's board of directors and held almost 17 percent of the stock. Collins reportedly used information from negative clinical trial tests conducted by a pharmaceutical company named Innate.
In total, the three defendants avoided "over $768,000 in losses that they would have otherwise incurred" had they sold their stock after the information was made public, according to the indictment.
In a statement shared by the congressman's office, Collins' lawyers pledged to "mount a vigorous defense to clear his good name". "It is notable that even the government does not allege that Congressman Collins traded a single share [of Innate stock]". We are confident he will be completely vindicated and exonerated.
The Republican congressman, who has served New York's 27th District since 2013, surrendered to federal agents in Manhattan on Wednesday morning and is expected to appear in federal court in lower Manhattan later in the day. The charges were announced and the was indictment unsealed in New York City on Wednesday.
This is developing news.
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